Visibility

Delivering total supply chain control with 4PL transparency…. and much more

The COVID-19 pandemic raised public awareness of the critical importance of supply chains, with the industry being recognised as ‘key workers’ throughout the crisis. And the need for efficient logistics has increased reliance on fourth-party logistics (4PL) providers to manage complex global supply chains, which will see the global 4PL market, valued at £43 billion in 2021, reach £78 billion by 2030. Or we suspect probably much more.

The Metro MVT (My Visibility Tool) platform was conceived and launched over 15 years ago to provide real-time shipment status updates and end to end control and milestone management throughout the life of a movement of product and its transit on a neutral platform. It is a cloud-based, hyper secure, 4PL solution that connects shippers to their entire supply chain, harnessing all participant entities, process and inventory data to provide complete real-time visibility, control and intelligence.

Accenture defines Metro’s 4PL solution as, “a supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organisation, with those of complementary service providers, to deliver a comprehensive supply chain solution.” 

“The 4PL client achieves improved service levels, reduced costs of up to 25%, minimised asset down time and reduced supply chain risks to the business. Performance visibility, better reporting and enhanced analytics assist faster and smarter decisions.”

Metro’s cloud-based 4PL platform is entirely modular and configured to each customer’s needs and situation. It consolidates multiple data sources to deliver 4PL insight and control, for strategic supply chain management and data-driven decision making.

Each 4PL platform embraces essential data sources from key supply chain participants, with advanced drill down features and a library of added value features that support participant management, financial oversight and performance benchmarking. 

The 4PL platform is a single source for managing end-to-end logistics, with multiple participants, carriers and service providers. Shippers, manufacturers and retailers find it easier, and more profitable, to focus on their core competencies and trust the control of their transportation and distribution to an expert like Metro, with a mature and proven 4PL solution.

The COVID pandemic and the Ukraine war have revealed the vulnerabilities of complex, geographically dispersed global supply chains. Metro’s 4PL platform creates visibility and stability, to make extended supply chains resilient, even in uncertain supply and demand conditions.

And because Metro do not own assets, there are no vested interests, just objectivity to optimise operations, detect and address issues, to deliver the most efficient supply chain, at the best cost and best performance metrics.

EXAMPLE 1

For automotive manufacturers and supercar marques, the Metro 4PL control towers manages the movement of finished vehicles globally. These singular assets are often time critical and very valuable, which means the 4PL needs to be constantly scanning the market to source the right mode of transport, for time sensitive freight moves, with the optimum balance of cost, service and on time delivery, while monitoring the vehicles progress throughout its journey. Scorecards rate vendors, validate invoices and provide a monthly KPI pack. 

EXAMPLE 2

For consumer product manufacturers Metro’s neutral 4PL solution manages multiple freight forwarders, consolidating data to provide a single view of the supply chain and giving the customer the ability to replace forwarders, without the hassle of integrating new systems.

Our commitment to innovation and developing bespoke digital solutions goes back decades, with the latest generation of 4PL tools incorporating robotics, predictive analytics and AI, to minimise risk along the supply chain. The latest modules monitor and measure CO2 emissions, at consignment level, for off-setting and ultimately carbon-neutral supply chains.

For more information on the 4PL platform, or to discuss how our technology could support your supply chain, please EMAIL Simon George our Technical Solutions Director or Matt Weight.

ECO globe 2021

New predictive tools for low-carbon supply chains; how Metro are delivering visibility

Considering that the world needs to accelerate its path to net zero carbon, we’re focused on creating valuable environmentally sustainable solutions, with new predictive tools that will enhance our shippers understanding of where their emissions are truly coming from, so they can build low-carbon supply chains.

Whether it is to comply with regulations, driven by stakeholder pressure, improve brand reputation or simply because it is the right thing to do, businesses need to understand the carbon impact of their supply chain and do something positive to minimise and mitigate their impact on the environment.

Calculating supply chain carbon emissions can be daunting, which is why we provide guidance, measuring tools and offset solutions to overcome the challenge.

Supply chain carbon foot printing requires lots of information, covering different activities and historically this wealth of data has been scattered, difficult to source, extricate and extrapolate.

And should you identify all the appropriate sources, the job is not over, as once your data is ready you will need to apply the appropriate carbon calculations.

With Metro’s MVT Eco module, all the CO2 measuring and emission analysis tools you need is found in one single place. With calculations that conform to EN 16258, you can trust in data and reporting that complies with the most demanding frameworks and methodologies.

MVT Eco makes it simple to measure your supply chain carbon emissions, for every single consignment, with the platform undertaking calculations automatically, based on your activity, saving you time, effort, money… and stress!

Launching our new ‘on demand calculator’ module means that shippers - for the first time - can see pre-shipment CO2 forecasts, by any mode and location, based on IATA or UNLOC codes and use those insights to create efficient, low-carbon supply chain solutions.

Using our latest generation MVT Eco module, we can develop intelligent supply chain solutions, based on accurate and representative data, that are respectful of the environment. Low-carbon multi-modal solutions that blend air, road, sea, inland waterways and rail, together with NGV and electric vehicles.

Predictive functionality:

  • Weight in kgs, tonnes, TEU, FEU or pallets
  • Global locations based on IATA or UNLOC codes
  • Select road, sea, air or any combination
  • Visual representation of distance, CO2, primary energy and total avoidance cost
  • Export to excel option

To discuss your situation, carbon reduction strategies and the availability of offset 
projects please contact Simon George, who leads our technical solution team. 

We encourage all customers and other collaborative partners to arrange a demonstration on what, how and why we are focusing on this important subject and continue to invest in reducing the impact of environmental damage within global supply chains. It will be 30 minutes of your time well spent – guaranteed.

ship and graph

Shipping line profits just keep growing

The operational efficiency of shipping lines are reaching dizzying levels, with the leading carriers generating an average operating margin of 57.4%, versus an average of just -0.2% in the decade preceding the pandemic.

All carriers reported higher margins in the latest quarter, compared to 55.6% in the third quarter of 2021, with Taiwan’s Evergreen achieving the highest operating margin of 68.6%.

Basically the carriers are making a return before interest and tax of 57 cents on every dollar of sales, with some carriers generating almost 70 cents on every dollar. That is immense, unprecedented and pretty much unmatched in any industry, especially when you consider the scale and size of global container shipping around the globe.

Though Hapag-Lloyd has said that it expects its second quarter results to come in slightly lower than the last quarter, it remains to be seen if the 57.4% margin is the peak of profitability for the container shipping industry, or if they will continue to post extraordinarily strong results.

May saw the highest monthly increase in long-term contracted ocean freight rates, as the cost of locking in container shipments soared by 30.1% and means that long-term rates are now 150.6% up year-on-year.

With 2022 long-term contract rates more than doubling year-on-year, it is possible that those contract prices could offset spot rates, should they soften later in the year. Which means that 2022 financial carrier results could still potentially exceed 2021.

By the end of 2022, the container shipping industry will have earned an unprecedented half a trillion dollars of operating profit, from two years of supply chain disruption and record freight rates.

The container shipping industry profits in the first quarter of 2022 beat Facebook, Amazon, Netflix and Google by 103%, expanding the gap from last year’s fourth quarter when liner industry profits beat the quartet by 14%.

Probably none of this is new news to you – but it is worth headlining and highlighting as it is a vital constituent in the price of goods and therefore a major contribution to the domestic and global inflation pressures and issues that are being experienced currently and for the foreseeable future. Someone has to ultimately pay for these higher costs and that is the consumer.

The container shipping lines are profiting from the perfect storm of demand and disruption, limiting effective capacity. Their pay-day comes after decades of meagre returns and one must hope that we will see a fair equilibrium, for shippers and carriers, eventually emerge.

Global supply chains are going to be under pressure for a while yet, and we will continue to share with you the most important developments so that you are informed and prepared to make critical decisions ahead of potential issues. 

We negotiate rate and volume agreements with carriers across all three alliances, which means we have the freedom to react to market conditions and changes. 

Please contact Elliot Carlile to discuss your supply chain expectations and deadlines to ensure your business is ‘future proofed’ for the rest of 2022.

HMRC offer Covid 19 relief

HMRC’s new declaration system: What you need to do

The Customs Declaration Service (CDS) will become the only UK customs platform when HMRC starts to phase out its legacy CHIEF system later this year and businesses importing goods into the UK need to take action on the government gateway.

Launched over 30 years ago the customs handling of import and export freight system (CHIEF) identifies goods for checks at ports and airports and is the channel for submitting customs declarations to HMRC, making it critical to the flow of international trade.

The decision to replace CHIEF was made prior to the EU referendum in 2015 and the new customs declaration service (CDS) was due to launch ahead of the UK leaving the EU, but it was not ready on time, to handle the large increase in customs declarations, which left HMRC updating and extending the use of CHIEF.

The government now feels confident that CDS can handle the increase in the volume of declarations resulting from Brexit, which have been estimated at 400 million p.a.

HMRC is moving from paper-based rules on CHIEF, to data processing rules on CDS in two stages:

  • 30th September 2022 – Import declarations will no longer be accepted via CHIEF
  • 31st March 2023 – Export declarations will no longer be accepted via CHIEF and the National Export System (NES)

CDS is replacing the HMRC legacy system for processing customs declarations and even though we will be preparing and submitting these declarations on behalf of our customers, you need to register on the government gateway so that your business can:

  • Get Import VAT statements and certificates to assist you in completing your VAT returns
  • Set up a new direct debit mandate, if you’re a deferment account holder

Request access to CDS through your existing government gateway account, using this LINK: https://www.gov.uk/guidance/get-access-to-the-customs-declaration-service.

NOTE – If you are a deferment account holder, you must set up a new direct-debit mandate for CDS, as the one for CHIEF will not work

You will need to provide HMRC with the following:

  • EORI number
  • Unique Tax Reference Number (UTR)
  • Registered business address for Customs records
  • The date on which you started your business

Once registered for CDS you will be able to view your “financial dashboard” on the Government Gateway, which is where you can set up a new direct debit mandate for your deferment account.

The application process should only take a few minutes and we recommend that you get access now, so that you are ready to get your first import VAT statement.

If you have not heard of CDS, or how to access the government gateway, we can guide you through the changes and actions required.

Contact us now for further information, discuss your situation and see our automated customs platform, CuDoS.

Andy Fitchett, who leads our brokerage team and function, and is a market-leading expert in the area, will be delighted to personally assist you with your enquiry.